Life insurance cover plus a £100 gift card^†

A life insurance plan works by providing a lump sum payout to your family or loved ones if you die or are diagnosed with a terminal illness and have less than 12 months to live. You pay a fixed monthly premium based on the coverage you need and how long you want the policy to last. If the worst happens while your policy is active, your named beneficiaries will be able to file a claim.

Your premiums are guaranteed to stay the same unless you make changes to your policy or choose increasing cover. The lump sum from your policy can be used to help pay the mortgage or help protect your family's lifestyle and everyday living expenses.

For more details on how Post Office Life Insurance works, including the definitions of terminal illnesses we’ll pay out for, please read our terms and conditions.

There are many reasons why you would need life insurance. Most people take out a policy when they are buying a house, getting married, or having children. If you have people who depend on you (whether it’s your spouse, kids or an elderly relative), life insurance can be a financial safety net if you were to fall ill or pass away unexpectedly.

Life insurance is beneficial at any age but it’s cheaper when you’re younger. So it may be worth taking out a policy a few years before you buy a house or start a family. By locking in a policy earlier, you’ll pay less overall. This can make it much more affordable, while still giving you the life security you need.

UK residents aged 18-70 (at the start of the policy) are eligible to take out a Post Office life insurance policy. The minimum term is 5 years and the cover must end before your 90th birthday.

There’s no legal requirement to take out life insurance if you’re taking on a mortgage. But many lenders will strongly recommend you get covered if you do. It’s a way to make sure the mortgage debt will be paid off if you die. And that can be welcome reassurance to your loved ones at a tough time, so they’re not at risk of losing their home as well as losing you. 

Most life insurance providers will offer a decreasing term life cover option. This type of cover will reduce over time, roughly in line with the way a repayment mortgage reduces. If you die while covered, your family will get a lump sum to help cover the remaining mortgage. This means they get to stay in the family home without the worry of mortgage payment.

Read our guide: mortgage life insurance

Even if you don't have a mortgage, life insurance could help your family cover the cost of everyday living and maintain their lifestyle. Things like rent, private or university education costs, birthdays and weddings all need paying for. You may even need cover to pay for domestic tasks if the person left behind has to pay someone to do them after you're gone.

The cost of life insurance is worked out by a number of things, including your age, health, lifestyle, and the amount of cover you need. In some cases, dangerous hobbies or high-risk jobs could also impact the cost. It’s important to be honest and upfront when buying life insurance to prevent voiding the policy.

Generally, the younger you are, the lower the premiums. If you’re older, you may want to look for specialised over 50s life insurance plans.

Critical illness cover pays a cash sum if, during your policy term, you suffer from heart attacks, strokes (depending on the severity), coronary artery or certain types of cancer that meet our definition.

At such a difficult time, it can ease financial pressures on you, your family or your partner. For instance, it may help pay for a mortgage, rent or everyday living costs. It might also be used for modifications to your home needed as a result of your illness. Find out more about our critical illness benefit, or our guide on family life insurance.

When buying life insurance, think about the amount of cover you might need. Consider things like:

• Your current financial situation and how it might impact dependents if you die
• Your beneficiaries and what support they’ll need
• Any existing cover you may already have (such as death in service benefits from your work)
• The type of policy that’s right for you (level, decreasing or increasing cover)
• Whether you want joint or single cover

Joint life insurance protects two people under one policy with one monthly premium payment. It only pays out once if a policyholder dies within the term.

Two single policies protect each policyholder separately but will mean paying two premiums each month. Consider which option is right for you.

With Post Office Life Insurance, your monthly payments will continue until the earliest of these:

• The end of the term of your policy
• Your death
• Our acceptance of your diagnosis of a terminal illness

If you make a claim after being diagnosed with a terminal illness, please don't stop paying your monthly payments. We’ll first confirm if your terminal illness meets our terminal illness definition, as per the terms and conditions.